The following table provides a roll forward of the Company’s beginning and ending reserve for losses and LAE and is summarized for the periods indicated:


	Nine Months Ended September 30,
	2025		2024
(Dollars in millions)
Gross reserves beginning of period	$	29,889	$	24,604
Less reinsurance recoverables on unpaid losses	(2,915)		(2,098)
Net reserves beginning of period	26,975		22,506

Incurred related to:
Current year	7,665		7,132
Prior years	537		—
Total incurred losses and LAE	8,203		7,132

Paid related to:
Current year	885		1,711
Prior years	4,670		2,932
Total paid losses and LAE	5,554		4,643

Foreign exchange/translation adjustment	607		209

Net reserves end of period	30,231		25,204
Plus reinsurance recoverables on unpaid losses	3,511		2,276
Gross reserves end of period	$	33,742	$	27,480

Current year incurred losses were $7.7 billion and $7.1 billion for the nine months ended September 30, 2025 and 2024, respectively. Gross and net reserves increased for the nine months ended September 30, 2025, reflecting an increase in underlying exposure due to strengthening of U.S. casualty reserves, year over year, amounting to approximately $476 million of current year attritional losses in 2025 compared to 2024, which includes $83 million of losses from the Washington D.C. aviation accident, as well as an increase of $58 million in 2025 current year catastrophe losses.

The net unfavorable development on prior year reserves of $537 million was primarily due to strengthening of U.S. casualty reserves and aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $59 million, driven by the release of reserves from prior underwriting years for the property line of business. The reserve strengthening for prior year loss development was driven by elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024.

In the second quarter of 2025, the United Kingdom’s High Court concluded that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $98 million ($84 million net of reinstatement premiums).